Erste Group Bank Has Optimistic View of CDNS FY2026 Earnings

Cadence Design Systems, Inc. (NASDAQ:CDNS) – Research analysts at Erste Group Bank lifted their FY2026 EPS estimates for shares of Cadence Design Systems in a report issued on Wednesday, August 5th. Erste Group Bank analyst H. Engel now forecasts that the software maker will earn $6.39 per share for the year, up from their prior estimate of $6.20. The consensus estimate for Cadence Design Systems’ current full-year earnings is $6.40 per share.

CDNS has been the topic of several other research reports. Robert W. Baird lifted their target price on shares of Cadence Design Systems from $415.00 to $420.00 and gave the company an “outperform” rating in a report on Tuesday, July 28th. Bank of America raised their price objective on Cadence Design Systems from $400.00 to $420.00 and gave the company a “buy” rating in a research report on Tuesday, July 28th. Wells Fargo & Company boosted their price objective on Cadence Design Systems from $400.00 to $425.00 and gave the stock an “overweight” rating in a research note on Tuesday, May 26th. Wall Street Zen raised Cadence Design Systems from a “hold” rating to a “buy” rating in a research report on Saturday, August 1st. Finally, Citigroup increased their target price on Cadence Design Systems from $400.00 to $420.00 and gave the company a “buy” rating in a research note on Tuesday, July 28th. Thirteen equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $405.69.

Cadence Design Systems Price Performance

Cadence Design Systems stock opened at $331.91 on Monday. The firm has a fifty day moving average of $366.99 and a 200-day moving average of $330.93. Cadence Design Systems has a 52-week low of $262.75 and a 52-week high of $416.69. The company has a quick ratio of 1.53, a current ratio of 1.74 and a debt-to-equity ratio of 0.36. The firm has a market capitalization of $91.40 billion, a P/E ratio of 65.99, a PEG ratio of 3.64 and a beta of 1.15.

Cadence Design Systems (NASDAQ:CDNS) last posted its quarterly earnings results on Monday, July 27th. The software maker reported $2.11 EPS for the quarter, beating the consensus estimate of $2.05 by $0.06. The firm had revenue of $1.58 billion for the quarter, compared to analyst estimates of $1.58 billion. Cadence Design Systems had a net margin of 23.60% and a return on equity of 27.98%. Cadence Design Systems’s revenue for the quarter was up 24.2% compared to the same quarter last year. During the same quarter last year, the firm posted $1.65 earnings per share. Cadence Design Systems has set its FY 2026 guidance at 8.050-8.150 EPS and its Q3 2026 guidance at 2.010-2.070 EPS.

Insiders Place Their Bets

In related news, VP Paul Cunningham sold 2,000 shares of the firm’s stock in a transaction on Monday, June 15th. The shares were sold at an average price of $391.00, for a total transaction of $782,000.00. Following the completion of the sale, the vice president directly owned 126,586 shares of the company’s stock, valued at approximately $49,495,126. This trade represents a 1.56% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Scannell sold 7,081 shares of Cadence Design Systems stock in a transaction on Monday, June 1st. The stock was sold at an average price of $393.91, for a total transaction of $2,789,276.71. Following the sale, the vice president directly owned 32,181 shares in the company, valued at $12,676,417.71. This trade represents a 18.04% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 140,557 shares of company stock valued at $54,631,737. Corporate insiders own 0.49% of the company’s stock.

Institutional Trading of Cadence Design Systems

Hedge funds and other institutional investors have recently modified their holdings of the business. Norges Bank acquired a new stake in shares of Cadence Design Systems during the fourth quarter worth approximately $1,352,922,000. J. Stern & Co. LLP increased its stake in shares of Cadence Design Systems by 10,159.3% in the fourth quarter. J. Stern & Co. LLP now owns 2,953,256 shares of the software maker’s stock worth $923,129,000 after buying an additional 2,924,470 shares during the last quarter. Wellington Management Group LLP raised its holdings in Cadence Design Systems by 218.6% in the fourth quarter. Wellington Management Group LLP now owns 2,553,225 shares of the software maker’s stock valued at $798,087,000 after acquiring an additional 1,751,927 shares in the last quarter. Bank of New York Mellon Corp acquired a new stake in Cadence Design Systems in the second quarter valued at $607,350,000. Finally, Deutsche Bank AG bought a new position in Cadence Design Systems during the 2nd quarter valued at $532,338,000. 84.85% of the stock is owned by hedge funds and other institutional investors.

Cadence Design Systems Company Profile

Cadence Design Systems, Inc (NASDAQ: CDNS) is a global provider of electronic design automation (EDA) software, hardware and intellectual property used to design and verify advanced semiconductor chips, systems-on-chip (SoCs), printed circuit boards (PCBs) and packaging. Headquartered in San Jose, California and founded in 1988, Cadence serves semiconductor companies, original equipment manufacturers and system designers across the globe, helping customers accelerate design cycles and manage the complexity of modern integrated systems.

The company’s offerings span software tools for digital, custom/analog and mixed-signal design, verification and signoff, as well as solutions for system-level modeling, thermal and signal integrity analysis, and PCB and package design.